Alomar Company manufactures four products from a joint production process: barlo
ID: 2342522 • Letter: A
Question
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
At the split-off point, a batch yields 1,900 barlon, 2,500 selene, 2,400 plicene, and 3,800 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $22 per unit, plicene sells for $28 per unit, and corsol sells for $38 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)
Direct materials $64,500 Direct labor 33,000 Overhead 26,500Explanation / Answer
Total Joint cost 124000 Calculation of weight based of sales value at split off Weight Barlon 28500 0.0966 Selene 55000 0.1864 Plicene 67200 0.2277 Corsol 144400 0.4893 Total 295100 Allocated Joint Cost Barlon 11978.4 (124000*0.0966) Selene 23113.6 (124000*0.1864) Plicene 28234.8 (124000*0.2277) Corsol 60673.2 (124000*0.4893) Total 124000
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